Union Cabinet Rolls Out New Policy Favouring EVs

The Union Cabinet has approved a new scheme to promote electric vehicles in India called PM Electric Drive Revolution In Innovative Vehicle Enhancement (PM E-DRIVE). This scheme will replace the existing FAME program that ran for nine years until March. However, the new scheme does not provide support for electric cars and has also excluded hybrid cars, contrary to expectations.

The government has allocated Rs 10,900 crore for two years for the PM E-DRIVE scheme, which will subsidize electric two-wheelers, three-wheelers, and buses. Hybrid ambulances and electric trucks will also be supported under this scheme. It is expected to support 24.79 lakh electric two-wheelers, 3.16 lakh e-three-wheelers, and 14,028 e-buses. The government will offer e-vouchers to EV buyers to avail of demand incentives under the scheme. At the time of purchasing an EV, the scheme portal will generate an Aadhaar-authenticated e-Voucher for the buyer.

Information and Broadcasting Minister Ashwini Vaishnaw announced that 88,500 electric vehicle chargers will be set up under the scheme. The decision on the PM E-DRIVE Scheme was taken at the meeting of the Union Cabinet chaired by Prime Minister Narendra Modi, as Vaishnaw told reporters.

An amount of Rs 4,391 crore has been provided for the procurement of 14,028 e-buses by state transport undertakings and public transport agencies. Demand aggregation will be done by CESL in nine cities with a population of more than 40 lakh, namely Delhi, Mumbai, Kolkata, Chennai, Ahmedabad, Surat, Bangalore, Pune, and Hyderabad. Intercity and interstate e-buses will also be supported in consultation with the states.

Additionally, Rs 500 crore has been earmarked for the deployment of e-ambulances, a new government initiative to promote the use of e-ambulances for comfortable patient transport.